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Credit Rationing Implies That

Question 38

Multiple Choice

Credit rationing implies that


A) some firms cannot borrow even though they are willing to do so at high interest rates
B) investment spending is affected not only by interest rates but also by the volume of profits and retained earnings
C) the central bank can affect the economy not just by changing interest rates but also by imposing credit controls
D) restrictive monetary policy by a central bank is reinforced by commercial banks' reluctance to extend loans for risky ventures
E) all of the above

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